I don’t trust them to actually donate anyway. How would you ever find out? I suspect these are scams to hold the money and get interest off it even if they do ultimately donate it.
this post was submitted on 21 Jun 2023
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Not sure if this is 100% accurate, but I heard that how it works is they donate the money first, get the tax write-off and then try to hit people up at the checkouts to refund all the money after the fact. That way they get the tax break for donating the money without actually being out of pocket. I don't know what happens if people donate more than the amount they spent, but I think I can take a reasonable guess.
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Even assuming this isn't a scam, it's certainly not something they're doing out of the goodness of their hearts - must be some combination of a) a tax write-off and b) an opportunity to claim credit for other people's donations. ("Stop & Shop is proud to have donated $275,000 this quarter to help families in need")
You forgot c) the donation is processed via the corporation's own charity foundation, and skims some money off the top to pay for the salaries of the people "running" the foundation. i.e. the c-suite of the company, or their relatives.
There is a Mastercard ad running during Apple TV+'s MLB Friday's that really goads me.
It's an ad about how "we are powerful indivudually" but can accomplish "anything together". This includes using your Mastercard where they'll donate a SINGLE CENT per purchase (up to $5m, gotta cap it!) to "fight" cancer. And this commercial... yeah, it stuck with me thus did it's job, but as the ad wraps up, with music swelling, all of these people come from nowhere to surround/hug an apparent cancer survivor (wearing the appropriate cancer survivor sweatshirt).
Gross. Just gross. Clearly it's for some tax write off, and technically there's nothing for you to do or spend, other than what you were already going to purchase.
But still, Mastercard could have just donated $5m outright. Or donated the amount of money they spent on that damned commercial, which was probably in excess of $5m given it's high quality production values!
where they'll donate a SINGLE CENT per purchase
And probably charge the merchant an extra 2c or 3c per transaction.
PSA: most Americans can get up to $300 deducted from their annual taxes through donations.
Yeah, this really bothers me. Because in reality, that company that you give money to at checkout is just going to bundle that all up and it's a donation in their name, used as a tax write-off. You as the shopper might feel nice and warm and fuzzy, but you're just giving a multimillion or billion dollar company a tax break. Just donate as yourself. If you want to help XYZ cause, do it on your own. My two cents.
They cannot and do not use your donations as a tax write off. That's not how taxes work.
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To be fair, I bet these companies strike deals with the charitable organizations to in turn raise visibility of those charities among the company's customers.
Bad example, grocery stores usually have small margins and aren't making a lot of money off of you